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Moving from Goldman Sachs from client to investor is not done every day, especially if you have spent a good part of your life on a skateboard or a surfboard rather than in a conference room.
But it's something Gary Hoberman managed to get earlier this year by persuading Goldman to be the biggest investor in a $ 22 million increase for his software company Unqork.
Hoberman was a sponsored skater in the 1980s, but joined the corporate world in the 1990s. He then held senior positions at MetLife and the Citi group, before founding Unqork in 2017, a startup. that he's heading out of New York.
Unqork provides a so-called "no code" software platform that allows businesses, such as banks, to develop enterprise applications without having to write code themselves. This allows software engineers to focus on other tasks that require coding.
The other special feature of Unqork is its pay-as-you-go model. Unlike traditional software providers, companies are only billed when applications are under development. This means that companies can modify these applications during development and ultimately avoid having to deal with a technology that does not work as expected.
"The building software is a bit like building a house"
Addressing Business Insider, Hoberman uses a vivid metaphor to explain where previous generations of software development went wrong – a metaphor that he said has helped secure Goldman's investment.
For Hoberman, the development of traditional software is apparent in the construction of a home. You may be delighted with the design, but you will be disappointed once it is built. Maybe you do not like the appearance of windows, as one of the rooms is too small or the hallways are too wide.
In the same way, a client can be very satisfied with the projects of a software developer for a new business application, to realize that the application is not what it is. 39 he once wanted that she is actually built. Maybe you feel too clumsy or too slow or that all the necessary information is not captured.
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Of course, the problem is that once the software is built and implemented in a traditional way, it can not be canceled without a lot of time and money, just as a house can not be changed quickly or cheaply. once built.
Hoberman explains, "The reality of life – I've seen it in every business, every time – is that after three years [of building] is up, and I give you the keys to the house, you will tell me immediately "it's not there that I wanted the windows."
"Until you go through and know where the windows come in and live there a day or two, and you've seen the morning sun, you do not know if that's what you want . "
"We created Unqork to solve cross-cutting issues, and I guarantee that if you interview a CEO or an information officer, he or she will answer" yes, that's exactly what we see ".
Yet, although this internal metaphor allowed Goldman Sachs to get an investment, the initial conversation between Hoberman and the bank had nothing to do with funding.
Goldman Sachs was the first company to request the use of the Unqork platform without the Unqork team
"With Goldman, our initial conversation was purely as a customer," he recalls. "We were not looking for investment, but the value they brought us – and we had the choice of investors, the best names you could imagine – they basically looked at our technology and said: "This is what we have been looking for for 20 years."
The original service of Unqork was to create an initial system for a customer, such as a bank, and then transfer it to that bank to learn how to add new features.
"But when Goldman Sachs came in," said Hoberman, "they said: look, what we want is that you commit to making this platform a tool that we could use without your team . "
Goldman started testing the software and Vice President, Sarah Shenton, said it "is one of the closest to a true, code-free, low-code platform that we've seen." He finally convinced Goldman to invest.
"Goldman Sachs, like all other customers, presents the most difficult proof of value," Hoberman said. "We welcome the skepticism and the love that we observe in the customer's face while in a day or two, it appears before their eyes."
"Then [Goldman using Unqork as a service], the goal was "we'd like to be part of your business and invest," and that's when we started the discussion for Series A. "
Hoberman adds that Goldman is far from the only big customer of Unqork. In addition to banks, the Unqork platform is also used by several major insurance companies, including Liberty Mutual – the very first client of Unqork – Principal – and John Hanbad.
"We are now certifying hundreds of customers and hundreds of consultants to use this tool, and we thank Goldman for this initiative," he said.
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